ATLANTA, July 14 /PRNewswire-FirstCall/ -- Bull Run Corporation
(OTC: BULL) today announced that its financial results continue to improve in
comparison with prior year results since the Company's decision to discontinue
a business segment in August 2004. The loss from continuing operations and
net loss for the Company's third quarter ended May 31, 2005 were both
approximately $(1.0) million, compared to a loss from continuing operations of
$(4.9) million and a net loss of $(6.3) million for the third quarter of the
prior year. For the nine months ended May 31, 2005, the Company reported a
loss from continuing operations and a net loss of approximately $(0.1)
million, compared to a loss from continuing operations of $(4.4) million and a
net loss of $(9.1) million for the same nine-month period of the prior year.
The improvements in the current year results over the prior year continue
to be derived from the Company's Collegiate Marketing and Production Services
business segment, and the Company's decision to discontinue its Affinity
Events business segment. In December 2004, the Company completed the sale of
assets associated with the Hoop-It-Up 3-on-3 basketball tour and the 3v3
Soccer Shootout tour, the primary components of the discontinued segment. The
prior year third quarter and year-to-date results were also unfavorably
impacted by a $3.3 million goodwill impairment charge.
Total revenues from continuing operations, derived entirely by the
Company's operating subsidiary, Host Communications, Inc., were $12.9 million
for the third quarter and $54.1 million for the nine-month period ended May
31, 2005, compared to $12.8 million and $48.6 million for the same respective
periods of the prior fiscal year. The Company's Collegiate business is
seasonal, corresponding with the collegiate football and basketball seasons,
and the segment's revenues and operating profits are therefore expected to be
highest in the first two quarters of the fiscal year. The Collegiate segment,
which includes the Company's Printing and Publishing operations, is expected
to generate approximately 80-85% of the Company's total annual revenues from
continuing operations.
Total revenues and operating profits for the Association Management
business were favorably affected in the current fiscal year by a new five-year
contract to manage the International Coach Federation (ICF), effective on May
1, 2005. With more than 8,000 members in 32 countries, ICF is recognized as
the largest non-profit professional association of personal and business
coaches.
"Our steady progress has been very encouraging," said Robert S. Prather,
Jr., the Company's President and CEO. "We have witnessed much improved
results at Host over this past year, not only in terms of profitability, but
also evidenced in much stronger business partnerships."
Thomas J. Stultz, President and CEO of Host since August 2004, said, "Our
plan was to place greater focus on our core, historically-profitable
operations - our Collegiate, Printing and Publishing and Association
Management businesses, and eliminate those operations which have historically
produced losses. We have been rewarded, thus far, with a more profitable
business and success in expanding and/or extending many of our existing key
relationships, with the added bonus of our new relationship with ICF. In
addition, we have recently been successful in adding three new corporate
partners for the Southeastern Conference, each a three-year arrangement.
There is still much more work to do, but we're on the right track."
Bull Run, through its wholly-owned operating company, Host Communications,
Inc., provides comprehensive sales, marketing, multimedia, special event and
convention/hospitality services to NCAA Division I universities and
conferences and national/global associations. Bull Run's common stock is
quoted on the Pink Sheets (http://www.pinksheets.com), a centralized quotation
service for OTC securities, using the symbol "BULL". Additional company
information and stock quotes are available on the Company's corporate web site
at http://www.bullruncorp.com.
Summarized financial results for each of the three months and nine months
ended May 31, 2005 and 2004 follow:
BULL RUN CORPORATION
Comparative Results of Operations
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
May 31, May 31,
2005 2004 2005 2004
Revenue from services rendered $12,949 $12,773 $54,058 $48,611
Operating costs
Direct operating costs for
services rendered 7,664 8,426 36,460 32,029
Selling, general and
administrative 4,693 4,577 13,319 13,436
Amortization and impairment of
acquisition intangibles 179 3,613 538 4,240
12,536 16,616 50,317 49,705
Operating income (loss) 413 (3,843) 3,741 (1,094)
Net change in value of derivative
instrument 400 412 947
Debt issue cost amortization (350) (294) (950) (878)
Interest and other, net (1,056) (1,199) (3,306) (3,404)
Loss from continuing operations (993) (4,936) (103) (4,429)
Discontinued operations (15) (1,400) 8 (4,719)
Net loss (1,008) (6,336) (95) (9,148)
Preferred dividends (488) (568) (1,520) (1,658)
Net loss available to
common stockholders $(1,496) $(6,904) $(1,615) $(10,806)
Earnings (loss) per share available to
common stockholders, basic and diluted:
Continuing operations $(0.22) $(1.15) $(0.25) $(1.34)
Discontinued operations (0.00) (0.29) 0.00 (1.04)
$(0.22) $(1.44) $(0.25) $(2.38)
Weighted average number
of common shares outstanding:
Basic and diluted 6,887 4,798 6,376 4,546
Forward-Looking Statements
Certain statements in this press release are "forward looking" statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are not guaranties of future performance and actual results
may differ materially from those forecasted.
SOURCE Bull Run Corporation
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Related links:
http://www.bullruncorp.com
CONTACT:
Robert S. Prather, Jr., President & Chief
Executive Officer, +1-404-266-8333, or Frederick J. Erickson,
VP-Finance & Chief Financial Officer, +1-859-226-4376, both of
Bull Run Corporation; or Thomas J. Stultz, President & Chief
Executive Officer of Host Communications, Inc., +1-859-226-4356
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